Final answer:
Duane, who is not licensed in real estate, is performing activities that typically require a real estate license by contacting homeowners for leads and is being compensated for it, which may be a violation of real estate license law. Both Duane and Kyra, a licensed real estate broker paying for the leads, could potentially face legal issues due to these actions, as most states require licensure for such activities.
Step-by-step explanation:
If Duane is contacting homeowners to assist Kyra, a licensed real estate broker, in locating prospective sellers and is being paid for leads without having a real estate license himself, this could indeed be a violation of real estate license law. Each state has its own real estate regulations which generally require individuals who perform the duties of a real estate broker to be licensed.
The act of soliciting homeowners to sell their property can be seen as performing the duties of a real estate agent or broker. Therefore, Duane may need a license to legally perform these activities, even if he is only providing leads to Kyra and not engaging in the actual sales transactions.
Payment for such activities typically falls under the compensation rules of real estate licensure. In many states, only licensed real estate professionals can receive compensation for services that fall under the scope of real estate transactions. Since Kyra is paying Duane for each lead, it raises concerns that he may be unlawfully engaged in activities that require licensure.
Kyra, as a licensed broker, should also be aware that employing unlicensed persons to perform duties that require a license could put her licensure status at risk. Brokers are often held responsible for understanding and upholding license law in their business practices, including those who they employ or contract for services.